Even if you don't work with a fulfillment company

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Tracking your sales numbers will show you whether your gross revenue growth is due to an increase in the number of customers or an increase in order size.

Customer Retention Rate
Customer Retention Rate (CRR) shows the percentage of customers who make a repeat purchase. This metric helps measure customer satisfaction and quantify the success of customer retention strategies.

Retaining customers is cheaper than acquiring new ones, and repeat customers tend to spend more and have a higher customer lifetime value.

How to calculate CRR, customer retention rate:

"Returning customers spend about twice as much on kazakhstan phone number list a purchase as new customers. What's more, they become brand advocates for us - loyal customers who are willing to recommend our product to their friends and colleagues," Morrell notes.

Keep in mind that this KPI is more relevant to certain industries. Fashion brands are likely to have more repeat customers than appliance brands – consumers tend to buy more clothing than appliances.

Pro Tip: Track customer churn along with your return customer rate. Together, these ecommerce KPIs will help you see how often your customers return to place additional orders.

Cost of customer acquisition
Customer acquisition cost (CAC) shows how much you spend to attract a new customer. This figure includes marketing costs, sales costs, overhead costs, and salaries for the marketing and sales departments.

How to calculate the CAC metric – customer acquisition cost:

CAC = Расходы на привлечение клиентов / Количество привлеченных клиентов
At the same time, the costs of attracting clients include direct advertising costs, salaries of specialists, the cost of tools and other expenses.

Martin Gontovnikas, Senior Vice President of Marketing and Growth at Auth0, says, “Customer acquisition campaigns can either help grow a business or cause a crisis. The more you spend to acquire a customer, the more value and, therefore, profit you should get from them.”

It is recommended to calculate the cost of attracting customers for each advertising channel separately, this approach will show which channel works better. Close monitoring of customer acquisition costs will show which channel needs to be reduced before a high CAC becomes a threat to the company's profitability.

Pro tip: If you want to understand whether you need to improve your sales or marketing efficiency for a particular channel, track the CAC across different sales channels and the overall average CAC. For example, if your CAC is high on Facebook, you may need to re-optimize your ad campaigns on that platform.